BSRV4601 Fundamentals of Real Estate: Practice Test 2 (Units
8-13) - Questions with Correct Answers
100 questions
1. Selling or gifting M■ori freehold land is:
A. Restricted and often requires M■ori Land Court involvement
B. Unrestricted
C. Prohibited in every case
D. Handled only by agents
Correct Answer: A. Restricted and often requires M■ori Land Court involvement
Rationale: Alienation restrictions.
2. Crown land includes:
A. All private homes
B. All unit titles
C. Land owned by the Crown such as conservation land
D. All leasehold land
Correct Answer: C. Land owned by the Crown such as conservation land
Rationale: Public land.
3. Pastoral leases in the South Island high country are:
A. Leases of Crown land for farming
B. Unit titles
C. M■ori freehold titles
D. Company shares
Correct Answer: A. Leases of Crown land for farming
Rationale: Crown pastoral land.
4. A 'stratum' estate refers to:
A. Rural land only
B. Ownership of a defined three-dimensional space, such as a unit
C. A lease of land
D. A licence
Correct Answer: B. Ownership of a defined three-dimensional space, such as a unit
Rationale: Unit titles.
5. The M■ori Land Court keeps:
A. Real estate licences
B. Building consents
C. Records of ownership interests in M■ori land
D. Body corporate minutes
Correct Answer: C. Records of ownership interests in M■ori land
Rationale: Court records.
6. Te Ture Whenua M■ori Act 1993 recognises land as:
A. A commodity only
B. Crown property
C. A taonga tuku iho (treasure handed down)
D. Council property
Correct Answer: C. A taonga tuku iho (treasure handed down)
Rationale: Cultural significance.
,7. A licensee asked to market M■ori freehold land should:
A. Treat it like any freehold house
B. Ignore the M■ori Land Court
C. Understand the legal restrictions and recommend specialist legal advice
D. Guarantee a quick sale
Correct Answer: C. Understand the legal restrictions and recommend specialist legal advice
Rationale: Specialist area.
8. General land owned by M■ori is:
A. Land owned by M■ori but with general freehold status, not M■ori freehold land
B. Always M■ori freehold land
C. Crown land
D. Unit title
Correct Answer: A. Land owned by M■ori but with general freehold status, not M■ori freehold
land
Rationale: Status matters.
9. Licensees must be aware of Treaty settlement memorials (e.g., section 27B memorials) on
titles because:
A. They indicate the land may be resumed for Treaty settlement purposes
B. They are decorative
C. They show mortgages
D. They show rates
Correct Answer: A. They indicate the land may be resumed for Treaty settlement purposes
Rationale: Title notation.
10. Rural land sales may involve Crown pastoral leases, which:
A. Are freehold
B. Have restrictions under the Crown Pastoral Land Act
C. Are unit titles
D. Are licences to occupy
Correct Answer: B. Have restrictions under the Crown Pastoral Land Act
Rationale: Crown leases.
11. Esplanade reserves along waterways are:
A. Private gardens
B. Unit title common property
C. Strips of land vested in councils to protect public access and the environment
D. M■ori freehold land only
Correct Answer: C. Strips of land vested in councils to protect public access and the
environment
Rationale: Created on subdivision.
12. Company share title (company flats) gives owners:
A. A record of title to their flat
B. A cross-lease
C. A unit title
D. Shares in a company that owns the building plus a right to occupy a flat
Correct Answer: D. Shares in a company that owns the building plus a right to occupy a flat
Rationale: Licence via shares.
, 13. Licensees selling company share title flats must be careful because:
A. Securities law and company rules may apply to the transfer of shares
B. No rules apply
C. They are cross-leases
D. They are Crown land
Correct Answer: A. Securities law and company rules may apply to the transfer of shares
Rationale: Legal complexity.
14. A 'timeshare' gives buyers:
A. Freehold ownership
B. A cross-lease
C. A body corporate
D. The right to use a property for a specified period each year
Correct Answer: D. The right to use a property for a specified period each year
Rationale: Shared use.
15. A licensee marketing a retirement village unit should provide:
A. Claims that it is freehold
B. Only photos
C. Accurate information about the occupation right and fees
D. Guaranteed capital gains
Correct Answer: C. Accurate information about the occupation right and fees
Rationale: Accurate disclosure.
16. Retirement village residents have a cooling-off period after signing an occupation right
agreement of:
A. 1 hour
B. 1 year
C. No cooling-off
D. 15 working days
Correct Answer: D. 15 working days
Rationale: Retirement Villages Act.
17. M■ori freehold land often has:
A. One owner always
B. No owners
C. Multiple owners holding undivided shares
D. A body corporate
Correct Answer: C. Multiple owners holding undivided shares
Rationale: Fragmented ownership.
18. A buyer finds a 'building line restriction' on a title. This means:
A. The house must be demolished
B. The land is leasehold
C. A mortgage exists
D. Buildings must be set back from a specified line, often for road widening
Correct Answer: D. Buildings must be set back from a specified line, often for road widening
Rationale: Restriction.
8-13) - Questions with Correct Answers
100 questions
1. Selling or gifting M■ori freehold land is:
A. Restricted and often requires M■ori Land Court involvement
B. Unrestricted
C. Prohibited in every case
D. Handled only by agents
Correct Answer: A. Restricted and often requires M■ori Land Court involvement
Rationale: Alienation restrictions.
2. Crown land includes:
A. All private homes
B. All unit titles
C. Land owned by the Crown such as conservation land
D. All leasehold land
Correct Answer: C. Land owned by the Crown such as conservation land
Rationale: Public land.
3. Pastoral leases in the South Island high country are:
A. Leases of Crown land for farming
B. Unit titles
C. M■ori freehold titles
D. Company shares
Correct Answer: A. Leases of Crown land for farming
Rationale: Crown pastoral land.
4. A 'stratum' estate refers to:
A. Rural land only
B. Ownership of a defined three-dimensional space, such as a unit
C. A lease of land
D. A licence
Correct Answer: B. Ownership of a defined three-dimensional space, such as a unit
Rationale: Unit titles.
5. The M■ori Land Court keeps:
A. Real estate licences
B. Building consents
C. Records of ownership interests in M■ori land
D. Body corporate minutes
Correct Answer: C. Records of ownership interests in M■ori land
Rationale: Court records.
6. Te Ture Whenua M■ori Act 1993 recognises land as:
A. A commodity only
B. Crown property
C. A taonga tuku iho (treasure handed down)
D. Council property
Correct Answer: C. A taonga tuku iho (treasure handed down)
Rationale: Cultural significance.
,7. A licensee asked to market M■ori freehold land should:
A. Treat it like any freehold house
B. Ignore the M■ori Land Court
C. Understand the legal restrictions and recommend specialist legal advice
D. Guarantee a quick sale
Correct Answer: C. Understand the legal restrictions and recommend specialist legal advice
Rationale: Specialist area.
8. General land owned by M■ori is:
A. Land owned by M■ori but with general freehold status, not M■ori freehold land
B. Always M■ori freehold land
C. Crown land
D. Unit title
Correct Answer: A. Land owned by M■ori but with general freehold status, not M■ori freehold
land
Rationale: Status matters.
9. Licensees must be aware of Treaty settlement memorials (e.g., section 27B memorials) on
titles because:
A. They indicate the land may be resumed for Treaty settlement purposes
B. They are decorative
C. They show mortgages
D. They show rates
Correct Answer: A. They indicate the land may be resumed for Treaty settlement purposes
Rationale: Title notation.
10. Rural land sales may involve Crown pastoral leases, which:
A. Are freehold
B. Have restrictions under the Crown Pastoral Land Act
C. Are unit titles
D. Are licences to occupy
Correct Answer: B. Have restrictions under the Crown Pastoral Land Act
Rationale: Crown leases.
11. Esplanade reserves along waterways are:
A. Private gardens
B. Unit title common property
C. Strips of land vested in councils to protect public access and the environment
D. M■ori freehold land only
Correct Answer: C. Strips of land vested in councils to protect public access and the
environment
Rationale: Created on subdivision.
12. Company share title (company flats) gives owners:
A. A record of title to their flat
B. A cross-lease
C. A unit title
D. Shares in a company that owns the building plus a right to occupy a flat
Correct Answer: D. Shares in a company that owns the building plus a right to occupy a flat
Rationale: Licence via shares.
, 13. Licensees selling company share title flats must be careful because:
A. Securities law and company rules may apply to the transfer of shares
B. No rules apply
C. They are cross-leases
D. They are Crown land
Correct Answer: A. Securities law and company rules may apply to the transfer of shares
Rationale: Legal complexity.
14. A 'timeshare' gives buyers:
A. Freehold ownership
B. A cross-lease
C. A body corporate
D. The right to use a property for a specified period each year
Correct Answer: D. The right to use a property for a specified period each year
Rationale: Shared use.
15. A licensee marketing a retirement village unit should provide:
A. Claims that it is freehold
B. Only photos
C. Accurate information about the occupation right and fees
D. Guaranteed capital gains
Correct Answer: C. Accurate information about the occupation right and fees
Rationale: Accurate disclosure.
16. Retirement village residents have a cooling-off period after signing an occupation right
agreement of:
A. 1 hour
B. 1 year
C. No cooling-off
D. 15 working days
Correct Answer: D. 15 working days
Rationale: Retirement Villages Act.
17. M■ori freehold land often has:
A. One owner always
B. No owners
C. Multiple owners holding undivided shares
D. A body corporate
Correct Answer: C. Multiple owners holding undivided shares
Rationale: Fragmented ownership.
18. A buyer finds a 'building line restriction' on a title. This means:
A. The house must be demolished
B. The land is leasehold
C. A mortgage exists
D. Buildings must be set back from a specified line, often for road widening
Correct Answer: D. Buildings must be set back from a specified line, often for road widening
Rationale: Restriction.
